Gov. Corzine announces $839M in cuts to help close N.J. budget gap

TRENTON -- Gov. Jon Corzine today detailed $839 million in cuts and savings to help the state close a budget gap of nearly $1 billion.

Corzine said he will ask schools to use up $260 million in surplus, wipe out the remaining $100 million in contributions to the state pension fund, and cut $479 million in other spending. At the same time, the state will pay for $350 million in other mid-year spending on programs such as Medicaid, senior property tax relief and tuition grants, and restore cuts to municipalities that he had announced earlier this month.

William Perlman/The Star-LedgerGov. Corzine, seen here in a November photo, announced today $839 million in cuts to help close a $1 billion budget deficit.

"The problem is that if you don't have much surplus left, and your boiler breaks or a child that needs specialized services moves in to the district, you need to find a way to pay for that," he said.

Assemblyman Joseph Malone (R-Burlington) said school aid was being removed unfairly.

“While I recognize that we can leave no stone unturned in this process, including aid to schools, I have concerns that the governor’s actions to take aid from only those districts operating with a surplus is tantamount to punishing those who have planned and budgeted efficiently," he said in a statement. "Every government department must be examined for opportunities to reduce spending."